Given this situation, which of the following will ensure that the firm has the proper planning in place?

A manufacturer of gas-powered motors realigns its supply chain to fit a new business segment. In the past, the firm focused on customized designs. Now, it wishes to compete in the electric motor market, which is highly competitive and price-sensitive.

Given this situation, which of the following will ensure that the firm has the proper planning in place?
A . Negotiating prices with suppliers with a focus on total cost of ownership models, to minimize inventory and logistics costs
B . Working with engineering to ensure the inclusion of customizable product and service features, in order to meet customer demands
C . Requiring suppliers to verify that sustainability metrics for various programs are closely monitored
D . Working with engineering and suppliers to develop new product designs

View Answer

Answer: A

Explanation:

In a price-sensitive and competitive market, focusing on total cost of ownership is critical. By negotiating with suppliers to minimize inventory and logistics costs, the firm can better control expenses and remain competitive. This approach ensures proper supply chain alignment with the new market segment’s demands.